BACKGROUND
Further to the announcement dated 3 November 2010, MMC wishes to announce that Malakoff, a 51%-owned subsidiary of MMC, Prai Power Sdn Bhd (“PPSB”) and Natural Analysis Sdn Bhd (“NASB”), has today signed a settlement and release agreement with GE Energy Parts Inc, GE Power Systems (Malaysia) Sdn Bhd, General Electric International Inc and General Electric Company (“GE Companies”) (Malakoff, PPSB, NASB, and GE Companies shall collectively be referred to as “the Parties”) (“Settlement and Release Agreement”).
The Settlement and Release Agreement among others, sets out the Parties’ agreement to mutually resolve the disputes between the Parties in connection to the damaged rotor incidents that had occurred on 11 September 2006 and 18 December 2009. These disputes are currently the subject matter of existing legal actions. As a result of the Settlement and Release Agreement, the Parties agree to, among others, immediately withdraw and discontinue the existing court actions and arbitration proceedings.
FINANCIAL IMPACT
The signing of the Settlement and Release Agreement is not expected to have any material impact on the earnings and the net assets of the MMC Group for the financial year ending 31 December 2012.
DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
None of the directors or substantial shareholders of MMC or persons connected to them has any interest, direct or indirect in the aforesaid Settlement and Release Agreement.
This announcement is dated 12 December 2012.